KTM’s insolvency administrator puts shares of MV Agusta on sale

An insolvency administrator has put KTM’s shares in MV Agusta up on the market, because the Austrian auto big continues to reel in from a monetary disaster.

KTM’s guardian firm Pierer Mobility AG had acquired a 25.1 per cent stake in MV Agusta in November 2022, earlier than taking on the vast majority of the corporate in March of this 12 months.

Now, its complete 50.1% stake within the Italian motorbike firm is being offered, in response to an announcement made by a regional courtroom in Ried im Innkreis in Higher Austria on 17 December.

The administrator can be promoting all shares in MV Agusta Providers as a part of insolvency proceedings in opposition to KTM.

Rumours recommend that former proprietor Timur Sardarov could also be keen on shopping for again shares in MV Agusta with a view to regain management of the corporate.

Like sister model KTM, MV Agusta has additionally suffered from overproduction in latest months, with round 2,000 unsold bikes believed to be mendacity in warehouses in Austria. Manufacturing is ready to be scaled again to match the decrease demand.

MV Agusta’s declining fortunes have additionally affected workers in Italy. The union and administration have already agreed on a solidarity pact, which features a 20 per cent wage reduce. What’s going to occur subsequent at its headquarters in Varese is at the moment unclear.

Extra modifications at Pierer Mobility

In the meantime, this week, Pierer Mobility introduced that Citigroup World Markets Europe has been commissioned to reorganise its possession construction.

In an announcement, it mentioned: “Pierer Mobility AG is at the moment holding talks with potential strategic traders and monetary traders. On the one hand, these are present companions, and however, talks are additionally being held with new strategic traders and monetary traders.

“In an effort to perform this course of in a structured, clear and environment friendly method within the pursuits of all stakeholders, Citigroup World Markets Europe AG was in the present day commissioned to help this funding course of.

“The intention of the funding course of is for traders to subscribe to a essential money capital enhance or monetary devices of Pierer Mobility AG. These money assets are for use to strengthen the Pierer Mobility Group, particularly KTM AG.”

Investigation launched

Nonetheless, there’s extra hassle brewing for KTM. In response to a report by the Oberosterreichische Nachrichten, which was additionally confirmed by the Austria Press Company, the Monetary Market Authority (FMA) in Austria has launched an investigation into its workings.

A probe is underway into whether or not the listed guardian firm Pierer Mobility has complied with disclosure rules. This issues the interval from Could to November wherein the forecasts of the enterprise had been adjusted and a change within the administration board was introduced.

Listed firms should publish insider data instantly in order that it’s obtainable to all market individuals on the identical time. Penalties could be imposed in case of non-compliance. The FMA has requested Pierer Mobility for an announcement on this matter.

Extra layoffs

Brad Binder, Crimson Bull KTM Manufacturing unit Racing

Picture by: Gold and Goose / Motorsport Photos

On Thursday there was additionally a gathering between KTM’s our bodies, the unions (PRO-GE, GPA) and the Higher Austrian Chamber of Labor. Whereas particulars have been stored a secret, additional layoffs are anticipated.

In response to a report by ORF, as much as 50 extra individuals are anticipated to lose their jobs by the tip of the 12 months. This could imply that round 800 individuals had been laid off from the time the insolvency proceedings had been introduced.

The Higher Austrian Chamber of Labor additionally talked about an extra “lack of belief” in KTM after December wages weren’t paid earlier than Christmas as promised.

“As a result of continuously altering financial scenario and the unsure framework situations, the AK, commerce unions and works council agreed to now not depend on bulletins, however to behave solely on the premise of information,” it mentioned.

Additional, the primary collectors’ assembly will happen on Friday on the regional courtroom in Ried im Innkreis. Insolvency administrator Peter Vogl will then current a primary report. The courtroom will resolve whether or not KTM AG and its two subsidiaries, which have additionally been declared self-liquidated, can proceed to function.